Guest column: LNG – an option for the future

Developments in the maritime sector are ever changing. One of the most likely future developments is increased use of LNG as a fuel in the maritime sector. Norway is a pioneer in this area. The first ferry powered by LNG was put in operation in 2000. Since then more than 30 LNG fuelled vessels, mainly ferries and offshore supply ships, have been added to the fleet, which will increase to over 60 by 2015.

LNG is becoming increasingly relevant for the maritime industry. The future stricter requirements on emission levels of sulphur from marine fuels in the North Sea and the Baltic Sea are among the main drivers for these developments. Legislation on emissions of nitrogen oxides (NOx) is likely to follow. Switching to LNG fuel will accommodate future international legislation as well as give a substantial net greenhouse gas reduction effect. LNG is good for the environment. It is also good for business. Since it is more energy-efficient than bunker fuels, it leads to lower operating costs. That is why Norwegian authorities, and the industry itself, see LNG as a highly viable option for the future.

The growth of the Norwegian LNG-fleet is related to a combination of public and private initiatives. The Norwegian NOx fund has been instrumental in this regard. Instead of paying the governmental NOx tax, companies can choose to make payments to the business sector NOx fund, which is spent on NOx-reducing investments. Furthermore, when procuring transport services, the public sector has required use of gas powered ferries where appropriate. Similarly, one of the largest operators on the Norwegian continental shelf, Statoil, demands LNG as fuel on some of its tenders. This has paved the way for several gas-powered offshore supply vessels.

I see developments in the field of LNG as ship fuel as an area with huge potential for cooperation between Norway and the Netherlands. The Netherlands with it its international ports and canals is the transportation hub for the European hinterland. Norway’s experience with LNG production, infrastructure, regulation and technology could be combined with the Dutch expertise within logistics and transportation to further explore the use of LNG, for example as fuel for inland waterways and road transport.

Norway and the Netherlands share a history as seafarers and maritime explorers. The sea, and the resources of the sea, have always been important to us, and still are. We are innovative, hard-working, and we share a common concern for the environment. I am convinced that combining our experience in the LNG sector can be of future value for both countries.

Anniken R. Krutnes
Ambassador of Norway to the Netherlands